NCC Shares Down by 10% as NHAI Orders Debarment for 2 Years

The shares of the construction firm NCC Ltd. is under selling pressure following a regulatory action by the National Highways Authority of India (NHAI).

Two-Year Debarment

The NHAI issued a debarment against NCC and its subsidiary, O B Infrastructure (OBIL). The order, which became effective on February 17, prohibits both entities from bidding on the agency’s projects for a period of two years. 

“NHAI, vide its communication dated 17th February 2026, has issued an order of debarment to the Concessionaire i.e., O B Infrastructure Limited (OBIL) (step-down Subsidiary) and Promoter of the Concessionaire i.e., NCC Limited restraining them from participating in any tender/bid/RFP issued by NHAI, whether acting as Concessionaire, Contractor, EPC Contractor, O&M Contractor, O&M Agency, or Consortium Member, for a period of two (2) years with effect from 17th February 2026,” the NCC said in a regulatory filing, as reported by the Financial Express.

The decision stems from a dispute over a project in the Orai-Bhognipur section of National Highway 25 in Uttar Pradesh which was executed by OBIL under a concession agreement signed on April 26, 2006. 

NCC said that the NHAI caused the delays in the project due to the agency’s failure to hand over the land on time and other breaches. 

The company said that OBIL initiated arbitration proceedings against the NHAI and received a favorable award in November 2024, but the agency is challenging the award before the Hon’ble High Court of Delhi.

Investors’ Concerns

NCC said that the debarment does not affect its existing projects or current order book, but 

The NHAI order is now impacting its stock price amid concerns that this will have an impact on the inflows of the company. 

NCC hit a low of ₹135, down by nearly 10% from the previous close of ₹149.76. The stock later regained some of the losses and is now changing hands for  ₹148.34, down by 0.95%.

The company is now raising issues with the debarment order.